EX-99.1 2 d703216dex991.htm EX-99.1

Exhibit 99.1

Popular, Inc. Announces First Quarter 2019 Financial Results

| • |  | Net income of $167.9 million in Q1 2019, compared to net income of $106.4 million and adjusted net income of $134.1 million in Q4 2018.

| • |  | Net interest margin of 4.20% in Q1 2019, compared to 4.25% in Q4 2018.

| • |  | Credit Quality:

| • |  | Non-performing loans held-in-portfolio (“NPLs”) decreased by $24.9 million from Q4 2018; NPLs to loans ratio at 2.2% vs. 2.3% in Q4 2018;

| • |  | Net charge-offs (“NCOs”) decreased by $46.4 million from Q4 2018; NCOs at 0.92% of average loans held-in-portfolio vs. 1.63% in Q4 2018;

| • |  | Allowance for loan losses to loans held-in-portfolio at 2.07% vs. 2.15% in Q4 2018; and

| • |  | Allowance for loan losses to NPLs at 93.9% vs. 93.2% in Q4 2018.

| • |  | Common Equity Tier 1 ratio of 16.39%, Common Equity per Share of $55.78 and Tangible Book Value per Share of $48.58 at March 31, 2019.

SAN JUAN, Puerto Rico — (BUSINESS WIRE) — Popular, Inc. (the “Corporation,” “Popular,” “we,” “us,” “our”) (NASDAQ:BPOP) reported net income of $167.9 million for the first quarter ended March 31, 2019, compared to net income of $106.4 million and adjusted net income of $134.1 million for the fourth quarter ended December 31, 2018.

Ignacio Alvarez, President and Chief Executive Officer, said: “The first quarter was a great start to 2019 and places us on a solid footing for the remainder of the year. Credit quality metrics were positive, and we achieved loan growth in Puerto Rico for the second quarter in a row, led by our auto finance business. Our unique franchise puts us in a privileged position to take advantage of opportunities that will arise as Puerto Rico’s recovery continues. We continued to make progress in our U.S. mainland operations, which remain an important source of revenue diversification. Loan balances for the quarter were flat, but we are optimistic that loan growth will pick up as the year progresses.”

Earnings Highlights

(Unaudited) |  | Quarters ended |
(Dollars in thousands, except per share information) |  | 31-Mar-19 |  |  | 31-Dec-18 |  |  | 31-Mar-18 |
Net interest income |  | $ | 470,963 |  |  | $ | 476,225 |  |  | $ | 393,047 |
Provision for loan losses – non-covered loans |  |  | 41,825 |  |  |  | 42,568 |  |  |  | 69,333 |
Provision for loan losses – covered loans [1] |  |  | — |  |  |  | — |  |  |  | 1,730 |
Net interest income after provision for loan losses |  |  | 429,138 |  |  |  | 433,657 |  |  |  | 321,984 |
FDIC loss-share expense |  |  | — |  |  |  | — |  |  |  | (8,027 | )
Other non-interest income |  |  | 136,430 |  |  |  | 153,167 |  |  |  | 121,524 |
Operating expenses |  |  | 347,420 |  |  |  | 396,455 |  |  |  | 322,002 |
Income before income tax |  |  | 218,148 |  |  |  | 190,369 |  |  |  | 113,479 |
Income tax expense |  |  | 50,223 |  |  |  | 83,966 |  |  |  | 22,155 |
Net income |  | $ | 167,925 |  |  | $ | 106,403 |  |  | $ | 91,324 |
Net income applicable to common stock |  | $ | 166,994 |  |  | $ | 105,472 |  |  | $ | 90,393 |
Net income per common share - Basic |  | $ | 1.69 |  |  | $ | 1.06 |  |  | $ | 0.89 |
Net income per common share - Diluted |  | $ | 1.69 |  |  | $ | 1.05 |  |  | $ | 0.89 |

[1] | Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that were covered under the terminated FDIC loss sharing agreements.

Significant Events

Accelerated share repurchase transaction

On February 28, 2019, the Corporation entered into an accelerated share repurchase (“ASR”) transaction of $250 million with respect to its common stock, which was accounted for as a treasury stock transaction. Accordingly, as a result of the receipt of the initial shares, the Corporation recognized in shareholders’ equity approximately $200 million in treasury stock and $50 million as a reduction in capital surplus. The Corporation expects to further adjust its treasury stock and capital surplus accounts to reflect the delivery or receipt of cash or shares upon the termination of the ASR agreement, which will depend on the average price of the Corporation’s shares during the term of the ASR.

Increase in quarterly common stock dividend

As part of its capital plan for 2019, on January 23, 2019, the Corporation announced an increase in its quarterly common stock dividend from $0.25 per share to $0.30 per share, payable commencing in the second quarter of 2019. On February 15, 2019, the Corporation’s Board of Directors approved the first quarterly cash dividend of $0.30 per share on its outstanding common stock, which was paid on April 1, 2019 to shareholders of record at the close of business on March 8, 2019.

Adjusted results – Non-GAAP

The Corporation prepares its Consolidated Financial Statement using accounting principles generally accepted in the U.S. (“U.S. GAAP” or the “reported basis”). In addition to analyzing the Corporation’s results on the reported basis, management monitors the “Adjusted net income” of the Corporation and excludes from such calculation the impact of certain transactions on the results of its operations. Management believes that “Adjusted net income” provides meaningful information to investors about the underlying performance of the Corporation’s ongoing operations. “Adjusted net income” is a non-GAAP financial measure.

The table below describes adjustments to net income for the quarter ended December 31, 2018. No adjustments to net income are reflected for the quarter ended March 31, 2019.

(Unaudited) |  |  |  |  |  |  |  |  |
|  | Quarter ended |
(In thousands) |  | 31-Dec-18 |
|  | Pre-tax |  |  | Income tax effect |  |  | Impact on net income |
U.S. GAAP Net income |  |  |  |  |  |  |  |  |  | $ | 106,403 |
Non-GAAP Adjustments: |  |  |  |  |  |  |  |  |  |  |  |
Impact of Law Act No.257[1] |  |  | — |  |  |  | 27,686 |  |  |  | 27,686 |
Adjusted net income (Non-GAAP) |  |  |  |  |  |  |  |  |  | $ | 134,089 |

[1] | On December 10, 2018, the Governor of Puerto Rico signed into law Act No.257 of 2018, which amended the Puerto Rico Internal Revenue Code, to among other things, reduce the Puerto Rico corporate tax rate from 39% to 37.5%. The resulting adjustments reduced the DTA related to the Corporation’s P.R. operations as a result of a lower realizable benefit at the lower tax rate.

Net interest income

Net interest income for the quarter ended March 31, 2019 was $471.0 million, compared to $476.2 million for the previous quarter. The net interest margin was 4.20% for the quarter, compared to 4.25% for the previous quarter.

The decrease of $5.2 million in net interest income is mainly the result of the following:

| • |  | Lower income from the commercial loan portfolio by $3.8 million, or 5 basis points, mainly at Popular Bank (“Popular U.S.” or “PB”) due to lower prepayment penalties collected on cancelled loans and the impact of two fewer days in the quarter. The results for the fourth quarter of 2018 for Banco Popular de Puerto Rico (“BPPR”) benefited from a positive adjustment of $5.7 million to interest income due to the prepayment of a commercial loan accounted for under ASC 310-30;

| • |  | Lower income from construction loans by $1.6 million, or 20 basis points, mainly at Popular Bank due to lower average balance of the portfolio;

| • |  | Lower income from the auto loans portfolio by $3.0 million, or 77 basis points, driven by $4.5 million lower amortization of the fair value discount of the portfolio acquired from Wells Fargo during the third quarter of 2018 and the impact of two fewer days in the quarter, partially offset by higher average volume of loans by $141 million; and

| • |  | Higher cost of interest-bearing deposits by $5.6 million, or 8 basis points, was mainly due to higher average balances in NOW and money market and savings accounts, driven by public sector deposits at BPPR, coupled with the impact of the increase in short-term rates at the end of the fourth quarter of 2018. Popular Bank reflected an increase in the cost of time deposits, mainly related to its digital deposit channel.

Partially offset by:

| • |  | Higher income from money market, trading and investments by $6 million, or 10 basis points, as a result of higher yields during the quarter, including the impact of the increase in the Fed Funds rate by 25 basis points in December 2018 as well as higher average balance of money market investment and debt securities; and

| • |  | Lower borrowing costs by $1.9 million, or 6 basis points, due mainly to lower rates on borrowings as a result of the Corporation having redeemed during the fourth quarter of 2018 $450 million, 7% Senior Notes and issued during the third quarter of 2018 $300 million of its 6.125% Senior Notes due 2023.

BPPR’s net interest income amounted to $407.4 million for the quarter ended March 31, 2019, compared to $408.7 million in the previous quarter. The decrease of $1.3 million in net interest income was mainly due to higher cost and higher average deposit balances, principally from the public sector. Also, lower income from the auto loans portfolio driven by lower amortization of the fair value discount portfolio acquired from Wells Fargo, partially offset by higher interest income from money market and investment securities, as mentioned above. The net interest margin for the first quarter of 2019 was 4.49%, a decrease of 2 basis points when compared to 4.51% for the previous quarter. The decrease in net interest margin was due to higher cost of deposits and lower yield on the auto portfolio. BPPR’s earning assets yielded 5.07%, compared to 5.04% in the previous quarter, while the cost of interest-bearing deposits was 0.79%, or 6 basis points higher than the 0.73% reported in the previous quarter. Total cost of deposits for the quarter was 0.60%. The impact of 2 fewer days in the quarter represented approximately $6.3 million in BPPR’s net interest income.

Net interest income for Popular U.S. was $72.8 million, for the quarter ended March 31, 2019, compared to $77.9 million during the previous quarter. The decrease of $5.1 million in net interest income was primarily due to lower income from commercial and construction loans, lower fees earned on the cancellation of loans and higher cost of deposits, as discussed above. Net interest margin for the quarter decreased 21 basis points to 3.40%, compared to 3.61% for the previous quarter. Earning assets yielded 4.61%, compared to 4.74% in the previous quarter, while the cost of interest-bearing deposits was 1.51%, compared to 1.38% in the previous quarter. The impact of 2 fewer days in the quarter represented approximately $1.3 million in Popular U.S. ‘s net interest income.

Non-interest income

Non-interest income decreased by $16.7 million to $136.4 million for the quarter ended March 31, 2019, compared to $153.2 million for the previous quarter. The reduction in non-interest income was primarily driven by:

| • |  | Lower other service fees by $5.9 million due to lower credit card and debit fees by $1.5 million and $0.7 million, respectively, as a result of lower interchange fees due to lower seasonal transaction volumes. Also, lower insurance fees by $1.6 million due to contingent commissions, which are typically recognized during the fourth quarter;

| • |  | lower income on mortgage banking activities by $9.5 million, mainly due to a variance in the fair value of mortgage servicing rights that included an $8.7 million positive adjustment during the fourth quarter of 2018; and

| • |  | lower other operating income by $11.1 million, principally due to $9.5 million in recoveries for hurricane-related claims recognized in the previous quarter and lower modification fees received for the successful completion of loss mitigation alternatives by $1.3 million.

These variances were partially offset by:

| • |  | Higher unrealized net gains on equity securities by $3.5 million mainly on deferred compensation plans that have an offsetting expense in personnel costs; and

| • |  | favorable variance in adjustments to indemnity reserves of $6.4 million related to loans previously sold with credit recourse at BPPR.

Refer to Table B for further details.

Operating expenses

Operating expenses for the first quarter of 2019 amounted to $347.4 million, a decrease of $49.0 million when compared to the fourth quarter of 2018. The decrease in operating expenses was driven primarily by:

| • |  | Lower personnel costs by $29.9 million, as a result of $17.2 million recognized during the fourth quarter of 2018 in connection with the implementation of the Voluntary Retirement Program (“VRP”) and $13.9 million related to annual incentives tied to the Corporation’s profit-sharing plans;

| • |  | lower business promotion expenses by $7.0 million due to lower seasonal advertising costs and lower consumer reward program expense; and

| • |  | favorable variance of $12.5 million, resulting from the recognition of a loss in the fourth quarter of 2018 in connection with the early extinguishment of $450 million in 7% Senior Notes, which were due in 2019.

Full-time equivalent employees were 8,242 as of March 31, 2019, compared to 8,474 as of December 31, 2018. The decrease in headcount is mainly related to the net impact of the VRP.

For a breakdown of operating expenses by category refer to Table B.

Income taxes

For the quarter ended March 31, 2019, the Corporation recorded an income tax expense of $50.2 million, compared to $84.0 million for the previous quarter. As previously disclosed, during the fourth quarter of 2018 the Corporation recognized a non-cash income tax expense of $27.7 million resulting from adjustments to the DTA related to its Puerto Rico operations due to the enactment of Act No. 257 of 2018, which amended the Puerto Rico Internal Revenue Code to, among other things, reduce the corporate income tax rate from 39% to 37.5%.

The effective tax rate for the first quarter of 2019 was 23%. Excluding the impact of the above mentioned adjustment, the effective tax rate for the fourth quarter of 2018 was 30% as more income was recognized at the 39% marginal tax rate in Puerto Rico and the debt extinguishment expenses of $12.5 million recorded during that quarter were not subject to a tax benefit. The effective tax rate of the Corporation is impacted by the composition and source of its taxable income. For the year 2019, the Corporation expects its consolidated effective tax rate to be within a range from 22-25%.

Credit Quality

During the first quarter of 2019, the Puerto Rico segment continued to reflect positive credit quality trends. Mortgage delinquencies continued to improve, and net charge-offs were at 0.71% on that portfolio. The Corporation continues to be attentive to the performance of its portfolios and related credit metrics. The credit quality metrics of our U.S. operation also remained favorable. The following presents credit quality results for the first quarter of 2019.

| • |  | Inflows of NPLs held-in-portfolio, excluding consumer loans, decreased by $13.1 million quarter-over-quarter, primarily related to lower P.R. commercial inflows. P.R. mortgage inflows for the quarter remained stable, mainly driven by lower early delinquencies.

| • |  | Total non-performing loans held-in-portfolio decreased by $24.9 million from the fourth quarter of 2018, mainly driven by lower P.R. commercial NPLs of $16.7 million, primarily related to a $12.0 million charge-off on a previously reserved loan. P.R. mortgage NPLs continued to gradually improve, decreasing by $5.7 million from the fourth quarter of 2018. At March 31, 2019, the ratio of NPLs to total loans held-in-portfolio was 2.2%, compared to 2.3% in the fourth quarter of 2018.

| • |  | Net charge-offs decreased by $46.4 million from the fourth quarter of 2018, primarily driven by lower P.R. commercial NCOs of $35.1 million, as the prior quarter included charge-offs from two large relationships. In addition, P.R. mortgage NCOs decreased by $6.9 million from the prior quarter. The Corporation’s ratio of annualized net charge-offs to average loans held-in-portfolio was 0.92%, compared to 1.63% in the fourth quarter of 2018. Refer to Table J for further information on net charge-offs and related ratios.

| • |  | The allowance for loan and lease losses (“ALLL”) decreased by $18.7 million from the fourth quarter of 2018 to $550.6 million. The P.R. segment ALLL decreased by $22.8 million, principally due to charge-offs from impaired loans, most significantly the abovementioned $12.0 million charge-off, coupled with improvements in loss trends in the mortgage portfolio.

| • |  | The general and specific reserves totaled $448.7 million and $101.9 million, respectively, at quarter-end, compared with $449.7 million and $119.7 million, respectively, as of December 31, 2018. The ratio of the allowance for loan losses to loans held-in-portfolio was 2.07% in the first quarter of 2019, compared to 2.15% in the previous quarter. The ratio of the allowance for loan losses to NPLs held-in-portfolio stood at 93.9% compared to 93.2% in the previous quarter.

| • |  | The provision for loan losses for the first quarter of 2019 remained essentially flat at $41.8 million. The P.R. segment provision decreased by $12.0 million, while the U.S. segment increased by $11.3 million, primarily driven by the commercial portfolios. The provision to net charge-offs ratio was 69.1% in the first quarter of 2019, compared to 39.8% in the previous quarter.

Non-Performing Assets

(Unaudited) |  |  |  |  |  |  |  |  |
(In thousands) |  | 31-Mar-19 |  |  | 31-Dec-18 |  |  | 31-Mar-18 |
Total non-performing loans held-in-portfolio, excluding covered loans |  | $ | 586,202 |  |  | $ | 611,087 |  |  | $ | 606,796 |
Other real estate owned (“OREO”), excluding covered OREO |  |  | 125,478 |  |  |  | 136,705 |  |  |  | 153,061 |
Total non-performing assets, excluding covered assets |  |  | 711,680 |  |  |  | 747,792 |  |  |  | 759,857 |
Covered loans and OREO |  |  | — |  |  |  | — |  |  |  | 18,928 |
Total non-performing assets |  | $ | 711,680 |  |  | $ | 747,792 |  |  | $ | 778,785 |
Net charge-offs for the quarter (excluding covered loans) |  | $ | 60,545 |  |  | $ | 106,938 |  |  | $ | 52,547 |

Ratios (excluding covered loans): |  |  |  |  |  |  |  |  |
Non-covered loans held-in-portfolio |  | $ | 26,647,708 |  |  | $ | 26,507,889 |  |  | $ | 24,087,937 |
Non-performing loans held-in-portfolio to loans held-in-portfolio |  |  | 2.20 | % |  |  | 2.31 | % |  |  | 2.52 | %
Allowance for loan losses to loans held-in-portfolio |  |  | 2.07 |  |  |  | 2.15 |  |  |  | 2.52 |
Allowance for loan losses to non-performing loans, excluding loans held-for-sale |  |  | 93.93 |  |  |  | 93.17 |  |  |  | 100.03 |

Refer to Table H for additional information.

Provision for Loan Losses

(Unaudited) |  | Quarters ended |
(In thousands) |  | 31-Mar-19 |  |  | 31-Dec-18 |  |  | 31-Mar-18 |
Provision (reversal) for loan losses: |  |  |  |  |  |  |  |  |  |  |  |
BPPR |  | $ | 31,454 |  |  | $ | 43,461 |  |  | $ | 56,718 |
Popular U.S. |  |  | 10,371 |  |  |  | (893 | ) |  |  | 12,615 |
Total provision for loan losses - non-covered loans |  | $ | 41,825 |  |  | $ | 42,568 |  |  | $ | 69,333 |
Provision for loan losses - covered loans |  |  | — |  |  |  | — |  |  |  | 1,730 |
Total provision for loan losses |  | $ | 41,825 |  |  | $ | 42,568 |  |  | $ | 71,063 |

Credit Quality by Segment

(Unaudited) |  |  |  |  |  |  |  |  |
(In thousands) |  | Quarters ended |
BPPR |  | 31-Mar-19 |  |  | 31-Dec-18 |  |  | 31-Mar-18 |
Provision for loan losses |  | $ | 31,454 |  |  | $ | 43,461 |  |  | $ | 56,718 |
Net charge-offs |  |  | 54,229 |  |  |  | 96,479 |  |  |  | 41,227 |
Total non-performing loans held-in-portfolio, excluding covered loans |  |  | 544,992 |  |  |  | 568,098 |  |  |  | 573,516 |
Allowance / non-covered loans held-in-portfolio |  |  | 2.42 | % |  |  | 2.55 | % |  |  | 3.01 | %

|  | Quarters ended |
Popular U.S. |  | 31-Mar-19 |  |  | 31-Dec-18 |  |  | 31-Mar-18 |
Provision (reversal) for loan losses |  | $ | 10,371 |  |  | $ | (893 | ) |  | $ | 12,615 |
Net charge-offs |  |  | 6,316 |  |  |  | 10,459 |  |  |  | 11,320 |
Total non-performing loans held-in-portfolio |  |  | 41,210 |  |  |  | 42,989 |  |  |  | 33,280 |
Allowance / non-covered loans held-in-portfolio |  |  | 1.00 | % |  |  | 0.94 | % |  |  | 1.16 | %

Financial Condition Highlights

(Unaudited) |  |  |
(In thousands) |  | 31-Mar-19 |  |  | 31-Dec-18 |  |  | 31-Mar-18 |
Cash and money market investments |  | $ | 5,190,692 |  |  | $ | 4,565,083 |  |  | $ | 7,264,086 |
Investment securities |  |  | 13,839,874 |  |  |  | 13,595,130 |  |  |  | 10,733,010 |
Loans not covered under loss-sharing agreements with the FDIC |  |  | 26,647,708 |  |  |  | 26,507,889 |  |  |  | 24,087,937 |
Loans covered under loss-sharing agreements with the FDIC |  |  | — |  |  |  | — |  |  |  | 514,611 |
Total assets |  |  | 48,680,607 |  |  |  | 47,604,577 |  |  |  | 45,756,761 |
Deposits |  |  | 40,879,838 |  |  |  | 39,710,039 |  |  |  | 37,134,093 |
Borrowings |  |  | 1,377,401 |  |  |  | 1,537,673 |  |  |  | 2,130,465 |
Total liabilities |  |  | 43,240,547 |  |  |  | 42,169,520 |  |  |  | 40,691,852 |
Stockholders’ equity |  |  | 5,440,060 |  |  |  | 5,435,057 |  |  |  | 5,064,909 |

Total assets increased by $1.1 billion from the fourth quarter of 2018, driven by:

| • |  | An increase of $0.6 billion in cash and money market investments, mainly due to an increase in public sector deposits at BPPR, partially offset by purchases of mortgage-backed securities;

| • |  | An increase of $0.2 billion in debt securities available-for-sale mainly due to purchases of mortgage-backed securities at BPPR and PB, partially offset by maturities of U.S. Treasury securities at BPPR;

| • |  | An increase of $0.1 billion in loans held-in-portfolio, mainly driven by growth of auto loans and leases at the BPPR segment; and

| • |  | An increase of $0.1 billion in other assets due to the recognition of right-of-use assets as a result of the implementation of the new lease accounting standard, which required balance sheet recognition of operating lease contracts.

Total liabilities increased by $1.1 billion from the fourth quarter of 2018, mainly due to:

| • |  | An increase of $1.2 billion in deposits due to an increase of $0.8 billion and $0.1 billion, respectively, in Puerto Rico public sector deposits and private savings deposits at BPPR and $0.2 billion in non-brokered time deposits at PB; and

| • |  | An increase of $0.1 billion in other liabilities due to the recognition of operating lease liabilities, as discussed above.

Partially offset by:

| • |  | A decrease of $0.2 billion in borrowings due to a decrease in assets sold under agreements to repurchase and Federal Home Loan Bank advances mainly at PB.

Stockholders’ equity increased by approximately $5.0 million from the fourth quarter of 2018, principally due to the net income for the quarter of $167.9 million and lower unrealized losses on debt securities available-for-sale by $101.4 million, offset by other adjustments including the impact of the $250 million accelerated share repurchase transaction and declared dividends on common and preferred stock.

Common equity tier-1 ratio (“CET1”), common equity per share and tangible book value per share were 16.39%, $55.78 and $48.58, respectively, at March 31, 2019, compared to 16.90%, $53.88 and $46.90 at December 31, 2018. Refer to Table A for capital ratios.

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation those about Popular’s business, financial condition, results of operations, plans, objectives and future performance. These statements are not guarantees of future performance, are based on management’s current expectations and, by their nature, involve risks, uncertainties, estimates and assumptions. Potential factors, some of which are beyond the Corporation’s control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Risks and uncertainties include without limitation the effect of competitive and economic factors, and our reaction to those factors, the adequacy of the allowance for loan losses, delinquency trends, market risk and the impact of interest rate changes, capital market conditions, capital adequacy and liquidity, the effect of legal and regulatory proceedings and new accounting standards on the Corporation’s financial condition and results of operations. All statements contained herein that are not clearly historical in nature, are forward-looking, and the words “anticipate,” “believe,” “continues,” “expect,” “estimate,” “intend,” “project” and similar expressions, and future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions, are generally intended to identify forward-looking statements.

More information on the risks and important factors that could affect the Corporation’s future results and financial condition is included in our Annual Report on Form 10-K for the year ended December 31, 2018, and in our Form 10-Q for the first quarter ended March 31, 2019 to be filed with the SEC. Our filings are available on the Corporation’s website (www.popular.com) and on the Securities and Exchange Commission website (www.sec.gov). The Corporation assumes no obligation to update or revise any forward-looking statements or information which speak as of their respective dates.

About Popular, Inc.

Popular, Inc. is the leading financial institution in Puerto Rico, by both assets and deposits, and ranks among the top 50 U.S. bank holding companies by assets. Founded in 1893, Banco Popular de Puerto Rico, Popular’s principal subsidiary, provides retail, mortgage and commercial banking services in Puerto Rico and the U.S. Virgin Islands. Popular also offers auto and equipment leasing and financing, investment banking, broker-dealer and insurance services through specialized subsidiaries. In the mainland United States, Popular provides retail, mortgage and commercial banking services through its New York-chartered banking subsidiary, Popular Bank, which has branches located in New York, New Jersey and Florida.

Conference Call

Popular will hold a conference call to discuss its financial results today Thursday, April 18, 2019 at 11:00 a.m. Eastern Time. The call will be open to the public and broadcasted live over the Internet, and can be accessed through the Investor Relations section of the Corporation’s website: www.popular.com.

Listeners are recommended to go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call may also be accessed through a dial-in telephone number 1-866-235-1201 or 1-412-902-4127. There is no charge to access the call.

A replay of the webcast will be archived in Popular’s website. A telephone replay will be available one hour after the end of the conference call through Friday, May 17, 2019. The replay dial-in is: 1-877-344-7529 or 1-412-317-0088. The replay passcode is 10129964.

An electronic version of this press release can be found at the Corporation’s website: www.popular.com.

Popular, Inc.

Financial Supplement to First Quarter 2019 Earnings Release

Table A - Selected Ratios and Other Information

Table B - Consolidated Statement of Operations

Table C - Consolidated Statement of Financial Condition

Table D - Consolidated Average Balances and Yield / Rate Analysis - QUARTER

Table E - Intentionally Left Blank (Consolidated Average Balances and Yield / Rate Analysis - YTD)

Table F - Mortgage Banking Activities & Other Service Fees

Table G - Loans and Deposits

Table H - Non-Performing Assets

Table I - Activity in Non-Performing Loans

Table J - Allowance for Credit Losses, Net Charge-offs and Related Ratios

Table K - Allowance for Loan Losses - Breakdown of General and Specific Reserves - CONSOLIDATED

Table L - Allowance for Loan Losses - Breakdown of General and Specific Reserves - PUERTO RICO OPERATIONS

Table M - Allowance for Loan Losses - Breakdown of General and Specific Reserves - POPULAR U.S. OPERATIONS

Table N - Reconciliation to GAAP Financial Measures

POPULAR, INC.

Financial Supplement to First Quarter 2019 Earnings Release

Table A - Selected Ratios and Other Information

(Unaudited)

|  | Quarters ended |
|  | 31-Mar-19 |  |  | 31-Dec-18 |  |  | 31-Mar-18 |
Basic EPS |  | $ | 1.69 |  |  | $ | 1.06 |  |  | $ | 0.89 |
Diluted EPS |  | $ | 1.69 |  |  | $ | 1.05 |  |  | $ | 0.89 |
Average common shares outstanding |  |  | 98,581,743 |  |  |  | 99,933,184 |  |  |  | 101,696,343 |
Average common shares outstanding - assuming dilution |  |  | 98,758,898 |  |  |  | 100,114,358 |  |  |  | 101,837,212 |
Common shares outstanding at end of period |  |  | 96,629,891 |  |  |  | 99,942,845 |  |  |  | 102,189,914 |
Market value per common share |  | $ | 52.13 |  |  | $ | 47.22 |  |  | $ | 41.62 |
Market capitalization - (In millions) |  | $ | 5,037 |  |  | $ | 4,719 |  |  | $ | 4,253 |
Return on average assets |  |  | 1.40 | % |  |  | 0.88 | % |  |  | 0.84 | %
Return on average common equity |  |  | 12.17 | % |  |  | 7.57 | % |  |  | 7.06 | %
Net interest margin |  |  | 4.20 | % |  |  | 4.25 | % |  |  | 3.89 | %
Common equity per share |  | $ | 55.78 |  |  | $ | 53.88 |  |  | $ | 49.07 |
Tangible common book value per common share (non-GAAP) [1] |  | $ | 48.58 |  |  | $ | 46.90 |  |  | $ | 42.61 |
Tangible common equity to tangible assets (non-GAAP) [1] |  |  | 9.78 | % |  |  | 9.99 | % |  |  | 9.66 | %
Tier 1 capital |  |  | 16.39 | % |  |  | 16.90 | % |  |  | 16.80 | %
Total capital |  |  | 19.00 | % |  |  | 19.54 | % |  |  | 19.74 | %
Tier 1 leverage |  |  | 9.57 | % |  |  | 9.88 | % |  |  | 9.98 | %
Common Equity Tier 1 capital |  |  | 16.39 | % |  |  | 16.90 | % |  |  | 16.80 | %

[1] | Refer to Table N for reconciliation to GAAP financial measures.

POPULAR, INC.

Financial Supplement to First Quarter 2019 Earnings Release

Table B - Consolidated Statement of Operations

(Unaudited)

|  | Quarters ended |  |  | Variance |  |  | Quarter ended |  |  | Variance |
(In thousands, except per share information) |  | 31-Mar-19 |  |  | 31-Dec-18 |  |  | Q1 2019 vs. Q4 2018 |  |  | 31-Mar-18 |  |  | Q1 2019 vs. Q1 2018 |
Interest income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans |  | $ | 447,713 |  |  | $ | 455,238 |  |  | $ | (7,525 | ) |  | $ | 373,584 |  |  | $ | 74,129 |
Money market investments |  |  | 29,220 |  |  |  | 25,030 |  |  |  | 4,190 |  |  |  | 22,285 |  |  |  | 6,935 |
Investment securities |  |  | 81,036 |  |  |  | 79,287 |  |  |  | 1,749 |  |  |  | 57,209 |  |  |  | 23,827 |
Total interest income |  |  | 557,969 |  |  |  | 559,555 |  |  |  | (1,586 | ) |  |  | 453,078 |  |  |  | 104,891 |
Interest expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  |  | 70,826 |  |  |  | 65,215 |  |  |  | 5,611 |  |  |  | 38,688 |  |  |  | 32,138 |
Short-term borrowings |  |  | 1,600 |  |  |  | 1,823 |  |  |  | (223 | ) |  |  | 2,013 |  |  |  | (413 | )
Long-term debt |  |  | 14,580 |  |  |  | 16,292 |  |  |  | (1,712 | ) |  |  | 19,330 |  |  |  | (4,750 | )
Total interest expense |  |  | 87,006 |  |  |  | 83,330 |  |  |  | 3,676 |  |  |  | 60,031 |  |  |  | 26,975 |
Net interest income |  |  | 470,963 |  |  |  | 476,225 |  |  |  | (5,262 | ) |  |  | 393,047 |  |  |  | 77,916 |
Provision for loan losses - non-covered loans |  |  | 41,825 |  |  |  | 42,568 |  |  |  | (743 | ) |  |  | 69,333 |  |  |  | (27,508 | )
Provision for loan losses - covered loans |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,730 |  |  |  | (1,730 | )
Net interest income after provision for loan losses |  |  | 429,138 |  |  |  | 433,657 |  |  |  | (4,519 | ) |  |  | 321,984 |  |  |  | 107,154 |
Service charges on deposit accounts |  |  | 38,691 |  |  |  | 38,973 |  |  |  | (282 | ) |  |  | 36,455 |  |  |  | 2,236 |
Other service fees |  |  | 64,307 |  |  |  | 70,226 |  |  |  | (5,919 | ) |  |  | 60,602 |  |  |  | 3,705 |
Mortgage banking activities |  |  | 9,926 |  |  |  | 19,394 |  |  |  | (9,468 | ) |  |  | 12,068 |  |  |  | (2,142 | )
Net gain (loss), including impairment, on equity securities |  |  | 1,433 |  |  |  | (2,039 | ) |  |  | 3,472 |  |  |  | (646 | ) |  |  | 2,079 |
Net profit (loss) on trading account debt securities |  |  | 260 |  |  |  | 91 |  |  |  | 169 |  |  |  | (198 | ) |  |  | 458 |
Net gain on sale of loans, including valuation adjustments on loans held-for-sale |  |  | — |  |  |  | 33 |  |  |  | (33 | ) |  |  | — |  |  |  | — |
Adjustments (expense) to indemnity reserves on loans sold |  |  | (93 | ) |  |  | (6,477 | ) |  |  | 6,384 |  |  |  | (2,926 | ) |  |  | 2,833 |
FDIC loss-share expense |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (8,027 | ) |  |  | 8,027 |
Other operating income |  |  | 21,906 |  |  |  | 32,966 |  |  |  | (11,060 | ) |  |  | 16,169 |  |  |  | 5,737 |
Total non-interest income |  |  | 136,430 |  |  |  | 153,167 |  |  |  | (16,737 | ) |  |  | 113,497 |  |  |  | 22,933 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personnel costs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries |  |  | 84,450 |  |  |  | 86,569 |  |  |  | (2,119 | ) |  |  | 78,397 |  |  |  | 6,053 |
Commissions, incentives and other bonuses |  |  | 25,761 |  |  |  | 23,315 |  |  |  | 2,446 |  |  |  | 21,316 |  |  |  | 4,445 |
Pension, postretirement and medical insurance |  |  | 9,761 |  |  |  | 11,698 |  |  |  | (1,937 | ) |  |  | 9,929 |  |  |  | (168 | )
Other personnel costs, including payroll taxes |  |  | 23,145 |  |  |  | 51,465 |  |  |  | (28,320 | ) |  |  | 16,210 |  |  |  | 6,935 |
Total personnel costs |  |  | 143,117 |  |  |  | 173,047 |  |  |  | (29,930 | ) |  |  | 125,852 |  |  |  | 17,265 |
Net occupancy expenses |  |  | 23,537 |  |  |  | 24,500 |  |  |  | (963 | ) |  |  | 22,802 |  |  |  | 735 |
Equipment expenses |  |  | 19,705 |  |  |  | 18,504 |  |  |  | 1,201 |  |  |  | 17,206 |  |  |  | 2,499 |
Other taxes |  |  | 11,662 |  |  |  | 12,583 |  |  |  | (921 | ) |  |  | 10,902 |  |  |  | 760 |
Professional fees |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Collections, appraisals and other credit related fees |  |  | 3,724 |  |  |  | 4,043 |  |  |  | (319 | ) |  |  | 3,058 |  |  |  | 666 |
Programming, processing and other technology services |  |  | 60,178 |  |  |  | 55,089 |  |  |  | 5,089 |  |  |  | 51,305 |  |  |  | 8,873 |
Legal fees, excluding collections |  |  | 3,489 |  |  |  | 4,118 |  |  |  | (629 | ) |  |  | 5,763 |  |  |  | (2,274 | )
Other professional fees |  |  | 20,075 |  |  |  | 25,846 |  |  |  | (5,771 | ) |  |  | 22,859 |  |  |  | (2,784 | )
Total professional fees |  |  | 87,466 |  |  |  | 89,096 |  |  |  | (1,630 | ) |  |  | 82,985 |  |  |  | 4,481 |
Communications |  |  | 5,849 |  |  |  | 5,765 |  |  |  | 84 |  |  |  | 5,906 |  |  |  | (57 | )
Business promotion |  |  | 14,674 |  |  |  | 21,653 |  |  |  | (6,979 | ) |  |  | 12,009 |  |  |  | 2,665 |
FDIC deposit insurance |  |  | 4,806 |  |  |  | 5,223 |  |  |  | (417 | ) |  |  | 6,920 |  |  |  | (2,114 | )
Loss on early extinguishment of debt |  |  | — |  |  |  | 12,522 |  |  |  | (12,522 | ) |  |  | — |  |  |  | — |
Other real estate owned (OREO) expenses |  |  | 2,677 |  |  |  | 2,310 |  |  |  | 367 |  |  |  | 6,131 |  |  |  | (3,454 | )
Credit and debit card processing, volume, interchange and other expenses |  |  | 8,223 |  |  |  | 4,790 |  |  |  | 3,433 |  |  |  | 4,608 |  |  |  | 3,615 |

Other operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operational losses |  |  | 4,888 |  |  |  | 9,103 |  |  |  | (4,215 | ) |  |  | 9,924 |  |  |  | (5,036 | )
All other |  |  | 18,504 |  |  |  | 15,006 |  |  |  | 3,498 |  |  |  | 14,432 |  |  |  | 4,072 |
Total other operating expenses |  |  | 23,392 |  |  |  | 24,109 |  |  |  | (717 | ) |  |  | 24,356 |  |  |  | (964 | )
Amortization of intangibles |  |  | 2,312 |  |  |  | 2,353 |  |  |  | (41 | ) |  |  | 2,325 |  |  |  | (13 | )
Total operating expenses |  |  | 347,420 |  |  |  | 396,455 |  |  |  | (49,035 | ) |  |  | 322,002 |  |  |  | 25,418 |
Income before income tax |  |  | 218,148 |  |  |  | 190,369 |  |  |  | 27,779 |  |  |  | 113,479 |  |  |  | 104,669 |
Income tax expense |  |  | 50,223 |  |  |  | 83,966 |  |  |  | (33,743 | ) |  |  | 22,155 |  |  |  | 28,068 |
Net income |  | $ | 167,925 |  |  | $ | 106,403 |  |  | $ | 61,522 |  |  | $ | 91,324 |  |  | $ | 76,601 |
Net income applicable to common stock |  | $ | 166,994 |  |  | $ | 105,472 |  |  | $ | 61,522 |  |  | $ | 90,393 |  |  | $ | 76,601 |
Net income per common share - basic |  | $ | 1.69 |  |  | $ | 1.06 |  |  | $ | 0.63 |  |  | $ | 0.89 |  |  | $ | 0.80 |
Net income per common share - diluted |  | $ | 1.69 |  |  | $ | 1.05 |  |  | $ | 0.64 |  |  | $ | 0.89 |  |  | $ | 0.80 |
Dividends Declared per Common Share |  | $ | 0.30 |  |  | $ | 0.25 |  |  | $ | 0.05 |  |  | $ | 0.25 |  |  | $ | 0.05 |

Popular, Inc.

Financial Supplement to First Quarter 2019 Earnings Release

Table C - Consolidated Statement of Financial Condition

(Unaudited)

|  |  |  |  |  |  |  |  |  |  | Variance |
|  |  |  |  |  |  |  |  |  |  | Q1 2019 vs. |
(In thousands) |  | 31-Mar-19 |  |  | 31-Dec-18 |  |  | 31-Mar-18 |  |  | Q4 2018 |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks |  | $ | 376,558 |  |  | $ | 394,035 |  |  | $ | 280,077 |  |  | $ | (17,477 | )
Money market investments |  |  | 4,814,134 |  |  |  | 4,171,048 |  |  |  | 6,984,009 |  |  |  | 643,086 |
Trading account debt securities, at fair value |  |  | 39,217 |  |  |  | 37,787 |  |  |  | 42,386 |  |  |  | 1,430 |
Debt securities available-for-sale, at fair value |  |  | 13,542,695 |  |  |  | 13,300,184 |  |  |  | 10,420,589 |  |  |  | 242,511 |
Debt securities held-to-maturity, at amortized cost |  |  | 99,455 |  |  |  | 101,575 |  |  |  | 104,817 |  |  |  | (2,120 | )
Equity securities |  |  | 158,507 |  |  |  | 155,584 |  |  |  | 165,218 |  |  |  | 2,923 |
Loans held-for-sale, at lower of cost or fair value |  |  | 43,985 |  |  |  | 51,422 |  |  |  | 77,701 |  |  |  | (7,437 | )
Loans held-in-portfolio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans not covered under loss-sharing agreements with the FDIC |  |  | 26,808,287 |  |  |  | 26,663,713 |  |  |  | 24,224,793 |  |  |  | 144,574 |
Loans covered under loss-sharing agreements with the FDIC |  |  | — |  |  |  | — |  |  |  | 514,611 |  |  |  | — |
Less: Unearned income |  |  | 160,579 |  |  |  | 155,824 |  |  |  | 136,856 |  |  |  | 4,755 |
Allowance for loan losses |  |  | 550,628 |  |  |  | 569,348 |  |  |  | 640,578 |  |  |  | (18,720 | )
Total loans held-in-portfolio, net |  |  | 26,097,080 |  |  |  | 25,938,541 |  |  |  | 23,961,970 |  |  |  | 158,539 |
FDIC loss-share asset |  |  | — |  |  |  | — |  |  |  | 44,469 |  |  |  | — |
Premises and equipment, net |  |  | 557,517 |  |  |  | 569,808 |  |  |  | 544,109 |  |  |  | (12,291 | )
Other real estate not covered under loss-sharing agreements with the FDIC |  |  | 125,478 |  |  |  | 136,705 |  |  |  | 153,061 |  |  |  | (11,227 | )
Other real estate covered under loss-sharing agreements with the FDIC |  |  | — |  |  |  | — |  |  |  | 15,333 |  |  |  | — |
Accrued income receivable |  |  | 162,797 |  |  |  | 166,022 |  |  |  | 157,340 |  |  |  | (3,225 | )
Mortgage servicing assets, at fair value |  |  | 167,813 |  |  |  | 169,777 |  |  |  | 166,281 |  |  |  | (1,964 | )
Other assets |  |  | 1,799,728 |  |  |  | 1,714,134 |  |  |  | 1,978,760 |  |  |  | 85,594 |
Goodwill |  |  | 671,122 |  |  |  | 671,122 |  |  |  | 627,294 |  |  |  | — |
Other intangible assets |  |  | 24,521 |  |  |  | 26,833 |  |  |  | 33,347 |  |  |  | (2,312 | )
Total assets |  | $ | 48,680,607 |  |  | $ | 47,604,577 |  |  | $ | 45,756,761 |  |  | $ | 1,076,030 |
Liabilities and Stockholders’ Equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-interest bearing |  | $ | 9,046,104 |  |  | $ | 9,149,036 |  |  | $ | 8,698,610 |  |  | $ | (102,932 | )
Interest bearing |  |  | 31,833,734 |  |  |  | 30,561,003 |  |  |  | 28,435,483 |  |  |  | 1,272,731 |
Total deposits |  |  | 40,879,838 |  |  |  | 39,710,039 |  |  |  | 37,134,093 |  |  |  | 1,169,799 |
Assets sold under agreements to repurchase |  |  | 200,871 |  |  |  | 281,529 |  |  |  | 380,061 |  |  |  | (80,658 | )
Other short-term borrowings |  |  | 42 |  |  |  | 42 |  |  |  | 186,200 |  |  |  | — |
Notes payable |  |  | 1,176,488 |  |  |  | 1,256,102 |  |  |  | 1,564,204 |  |  |  | (79,614 | )
Other liabilities |  |  | 983,308 |  |  |  | 921,808 |  |  |  | 1,427,294 |  |  |  | 61,500 |
Total liabilities |  |  | 43,240,547 |  |  |  | 42,169,520 |  |  |  | 40,691,852 |  |  |  | 1,071,027 |
Stockholders’ equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock |  |  | 50,160 |  |  |  | 50,160 |  |  |  | 50,160 |  |  |  | — |
Common stock |  |  | 1,043 |  |  |  | 1,043 |  |  |  | 1,043 |  |  |  | — |
Surplus |  |  | 4,313,040 |  |  |  | 4,365,606 |  |  |  | 4,300,936 |  |  |  | (52,566 | )
Retained earnings |  |  | 1,794,644 |  |  |  | 1,651,731 |  |  |  | 1,261,775 |  |  |  | 142,913 |
Treasury stock |  |  | (394,848 | ) |  |  | (205,509 | ) |  |  | (86,167 | ) |  |  | (189,339 | )
Accumulated other comprehensive loss, net of tax |  |  | (323,979 | ) |  |  | (427,974 | ) |  |  | (462,838 | ) |  |  | 103,995 |
Total stockholders’ equity |  |  | 5,440,060 |  |  |  | 5,435,057 |  |  |  | 5,064,909 |  |  |  | 5,003 |
Total liabilities and stockholders’ equity |  | $ | 48,680,607 |  |  | $ | 47,604,577 |  |  | $ | 45,756,761 |  |  | $ | 1,076,030 |

Popular, Inc.

Financial Supplement to First Quarter 2019 Earnings Release

Table D - Consolidated Average Balances and Yield / Rate Analysis - QUARTER

(Unaudited)

|  | Quarters ended |  |  | Variance |
|  | 31-Mar-19 |  |  | 31-Dec-18 |  |  | 31-Mar-18 |  |  | Q1 2019 vs. Q4 2018 |  |  | Q1 2019 vs. Q1 2018 |
($ amounts in millions; yields not on a taxable equivalent basis) |  | Average balance |  |  | Income / Expense |  |  | Yield / Rate |  |  | Average balance |  |  | Income / Expense |  |  | Yield / Rate |  |  | Average balance |  |  | Income / Expense |  |  | Yield / Rate |  |  | Average balance |  |  | Income / Expense |  |  | Yield / Rate |  |  | Average balance |  |  | Income / Expense |  |  | Yield / Rate |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market, trading and investment securities |  | $ | 18,773 |  |  | $ | 110.3 |  |  |  | 2.37 | % |  | $ | 18,278 |  |  | $ | 104.3 |  |  |  | 2.27 | % |  | $ | 16,748 |  |  | $ | 79.5 |  |  |  | 1.91 | % |  | $ | 495 |  |  | $ | 6.0 |  |  |  | 0.10 | % |  | $ | 2,025 |  |  | $ | 30.8 |  |  |  | 0.46 | %
Loans not covered under loss sharing agreements with the FDIC: |
Commercial |  |  | 12,064 |  |  |  | 178.3 |  |  |  | 5.99 |  |  |  | 11,967 |  |  |  | 182.1 |  |  |  | 6.04 |  |  |  | 11,469 |  |  |  | 161.5 |  |  |  | 5.71 |  |  |  | 97 |  |  |  | (3.8 | ) |  |  | (0.05 | ) |  |  | 595 |  |  |  | 16.8 |  |  |  | 0.28 |
Construction |  |  | 807 |  |  |  | 13.6 |  |  |  | 6.85 |  |  |  | 905 |  |  |  | 15.2 |  |  |  | 6.65 |  |  |  | 905 |  |  |  | 13.6 |  |  |  | 6.08 |  |  |  | (98 | ) |  |  | (1.6 | ) |  |  | 0.20 |  |  |  | (98 | ) |  |  | — |  |  |  | 0.77 |
Mortgage |  |  | 7,134 |  |  |  | 91.1 |  |  |  | 5.11 |  |  |  | 7,149 |  |  |  | 90.1 |  |  |  | 5.04 |  |  |  | 7,073 |  |  |  | 89.0 |  |  |  | 5.04 |  |  |  | (15 | ) |  |  | 1.0 |  |  |  | 0.07 |  |  |  | 61 |  |  |  | 2.1 |  |  |  | 0.07 |
Consumer |  |  | 2,814 |  |  |  | 82.8 |  |  |  | 11.93 |  |  |  | 2,815 |  |  |  | 83.6 |  |  |  | 11.78 |  |  |  | 2,885 |  |  |  | 78.1 |  |  |  | 10.98 |  |  |  | (1 | ) |  |  | (0.8 | ) |  |  | 0.15 |  |  |  | (71 | ) |  |  | 4.7 |  |  |  | 0.95 |
Auto |  |  | 2,729 |  |  |  | 67.6 |  |  |  | 10.05 |  |  |  | 2,588 |  |  |  | 70.6 |  |  |  | 10.82 |  |  |  | 922 |  |  |  | 19.0 |  |  |  | 8.34 |  |  |  | 141 |  |  |  | (3.0 | ) |  |  | (0.77 | ) |  |  | 1,807 |  |  |  | 48.6 |  |  |  | 1.71 |
Lease financing |  |  | 944 |  |  |  | 14.3 |  |  |  | 6.08 |  |  |  | 913 |  |  |  | 13.6 |  |  |  | 5.97 |  |  |  | 819 |  |  |  | 12.3 |  |  |  | 5.99 |  |  |  | 31 |  |  |  | 0.7 |  |  |  | 0.11 |  |  |  | 125 |  |  |  | 2.0 |  |  |  | 0.09 |
Total loans |  |  | 26,492 |  |  |  | 447.7 |  |  |  | 6.83 |  |  |  | 26,337 |  |  |  | 455.2 |  |  |  | 6.87 |  |  |  | 24,073 |  |  |  | 373.5 |  |  |  | 6.27 |  |  |  | 155 |  |  |  | (7.5 | ) |  |  | (0.04 | ) |  |  | 2,419 |  |  |  | 74.2 |  |  |  | 0.56 |
Total interest earning assets |  | $ | 45,265 |  |  | $ | 558.0 |  |  |  | 4.98 | % |  | $ | 44,615 |  |  | $ | 559.5 |  |  |  | 4.99 | % |  | $ | 40,821 |  |  | $ | 453.0 |  |  |  | 4.48 | % |  | $ | 650 |  |  |  | (1.5 | ) |  |  | (0.01 | )% |  | $ | 4,444 |  |  | $ | 105.0 |  |  |  | 0.50 | %
Allowance for loan losses |  |  | (576 | ) |  |  |  |  |  |  |  |  |  |  | (621 | ) |  |  |  |  |  |  |  |  |  |  | (634 | ) |  |  |  |  |  |  |  |  |  |  | 45 |  |  |  |  |  |  |  |  |  |  |  | 58 |  |  |  |  |  |  |  |  |
Other non-interest earning assets |  |  | 3,938 |  |  |  |  |  |  |  |  |  |  |  | 3,925 |  |  |  |  |  |  |  |  |  |  |  | 4,063 |  |  |  |  |  |  |  |  |  |  |  | 13 |  |  |  |  |  |  |  |  |  |  |  | (125 | ) |  |  |  |  |  |  |  |
Total average assets |  | $ | 48,627 |  |  |  |  |  |  |  |  |  |  | $ | 47,919 |  |  |  |  |  |  |  |  |  |  | $ | 44,250 |  |  |  |  |  |  |  |  |  |  | $ | 708 |  |  |  |  |  |  |  |  |  |  | $ | 4,377 |  |  |  |  |  |  |  |  |
Liabilities and Stockholders’ Equity: |
Interest bearing deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NOW and money market |  | $ | 14,051 |  |  | $ | 33.8 |  |  |  | 0.97 | % |  | $ | 13,848 |  |  | $ | 30.4 |  |  |  | 0.87 | % |  | $ | 11,194 |  |  | $ | 11.5 |  |  |  | 0.42 | % |  | $ | 203 |  |  | $ | 3.4 |  |  |  | 0.10 | % |  | $ | 2,857 |  |  | $ | 22.3 |  |  |  | 0.55 | %
Savings |  |  | 9,847 |  |  |  | 9.9 |  |  |  | 0.41 |  |  |  | 9,728 |  |  |  | 9.9 |  |  |  | 0.40 |  |  |  | 8,744 |  |  |  | 5.2 |  |  |  | 0.24 |  |  |  | 119 |  |  |  | — |  |  |  | 0.01 |  |  |  | 1,103 |  |  |  | 4.7 |  |  |  | 0.17 |
Time deposits |  |  | 7,676 |  |  |  | 27.1 |  |  |  | 1.43 |  |  |  | 7,419 |  |  |  | 24.9 |  |  |  | 1.33 |  |  |  | 7,697 |  |  |  | 22.0 |  |  |  | 1.16 |  |  |  | 257 |  |  |  | 2.2 |  |  |  | 0.10 |  |  |  | (21 | ) |  |  | 5.1 |  |  |  | 0.27 |
Total interest-bearing deposits |  |  | 31,574 |  |  |  | 70.8 |  |  |  | 0.91 |  |  |  | 30,995 |  |  |  | 65.2 |  |  |  | 0.83 |  |  |  | 27,635 |  |  |  | 38.7 |  |  |  | 0.57 |  |  |  | 579 |  |  |  | 5.6 |  |  |  | 0.08 |  |  |  | 3,939 |  |  |  | 32.1 |  |  |  | 0.34 |
Borrowings |  |  | 1,469 |  |  |  | 16.2 |  |  |  | 4.44 |  |  |  | 1,658 |  |  |  | 18.1 |  |  |  | 4.38 |  |  |  | 2,041 |  |  |  | 21.3 |  |  |  | 4.21 |  |  |  | (189 | ) |  |  | (1.9 | ) |  |  | 0.06 |  |  |  | (572 | ) |  |  | (5.1 | ) |  |  | 0.23 |
Total interest-bearing liabilities |  |  | 33,043 |  |  |  | 87.0 |  |  |  | 1.07 |  |  |  | 32,653 |  |  |  | 83.3 |  |  |  | 1.01 |  |  |  | 29,676 |  |  |  | 60.0 |  |  |  | 0.82 |  |  |  | 390 |  |  |  | 3.7 |  |  |  | 0.06 |  |  |  | 3,367 |  |  |  | 27.0 |  |  |  | 0.25 |
Net interest spread |  |  |  |  |  |  |  |  |  |  | 3.91 | % |  |  |  |  |  |  |  |  |  |  | 3.98 | % |  |  |  |  |  |  |  |  |  |  | 3.66 | % |  |  |  |  |  |  |  |  |  |  | (0.07 | )% |  |  |  |  |  |  |  |  |  |  | 0.25 | %
Non-interest bearing deposits |  |  | 8,953 |  |  |  |  |  |  |  |  |  |  |  | 8,895 |  |  |  |  |  |  |  |  |  |  |  | 8,434 |  |  |  |  |  |  |  |  |  |  |  | 58 |  |  |  |  |  |  |  |  |  |  |  | 519 |  |  |  |  |  |  |  |  |
Other liabilities |  |  | 1,016 |  |  |  |  |  |  |  |  |  |  |  | 799 |  |  |  |  |  |  |  |  |  |  |  | 898 |  |  |  |  |  |  |  |  |  |  |  | 217 |  |  |  |  |  |  |  |  |  |  |  | 118 |  |  |  |  |  |  |  |  |
Stockholders’ equity |  |  | 5,615 |  |  |  |  |  |  |  |  |  |  |  | 5,572 |  |  |  |  |  |  |  |  |  |  |  | 5,242 |  |  |  |  |  |  |  |  |  |  |  | 43 |  |  |  |  |  |  |  |  |  |  |  | 373 |  |  |  |  |  |  |  |  |
Total average liabilities and stockholders’ equity |  | $ | 48,627 |  |  |  |  |  |  |  |  |  |  | $ | 47,919 |  |  |  |  |  |  |  |  |  |  | $ | 44,250 |  |  |  |  |  |  |  |  |  |  | $ | 708 |  |  |  |  |  |  |  |  |  |  | $ | 4,377 |  |  |  |  |  |  |  |  |
Net interest income / margin non-taxable equivalent basis |  |  | $ | 471.0 |  |  |  | 4.20 | % |  |  |  |  |  | $ | 476.2 |  |  |  | 4.25 | % |  |  |  |  |  | $ | 393.0 |  |  |  | 3.89 | % |  |  |  |  |  | ($ | 5.2 | ) |  |  | (0.05 | )% |  |  |  |  |  | $ | 78.0 |  |  |  | 0.31 | %

Popular, Inc.

Financial Supplement to First Quarter 2019 Earnings Release

Table E - Consolidated Average Balances and Yield / Rate Analysis - YEAR-TO-DATE

[THIS PAGE INTENTIONALLY LEFT BLANK]

Popular, Inc.

Financial Supplement to First Quarter 2019 Earnings Release

Table F - Mortgage Banking Activities and Other Service Fees

(Unaudited)

Mortgage Banking Activities

|  | Quarters ended |  |  | Variance |
(In thousands) |  | 31-Mar-19 |  |  | 31-Dec-18 |  |  | 31-Mar-18 |  |  | Q1 2019 vs.Q4 2018 |  |  | Q1 2019 vs.Q1 2018 |
Mortgage servicing fees, net of fair value adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage servicing fees |  | $ | 11,687 |  |  | $ | 12,327 |  |  | $ | 12,456 |  |  | $ | (640 | ) |  | $ | (769 | )
Mortgage servicing rights fair value adjustments |  |  | (3,825 | ) |  |  | 4,646 |  |  |  | (4,307 | ) |  |  | (8,471 | ) |  |  | 482 |
Total mortgage servicing fees, net of fair value adjustments |  |  | 7,862 |  |  |  | 16,973 |  |  |  | 8,149 |  |  |  | (9,111 | ) |  |  | (287 | )
Net gain on sale of loans, including valuation on loans held-for-sale |  |  | 4,017 |  |  |  | 2,893 |  |  |  | 1,057 |  |  |  | 1,124 |  |  |  | 2,960 |
Trading account (loss) profit: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unrealized losses on outstanding derivative positions |  |  | — |  |  |  | (122 | ) |  |  | (221 | ) |  |  | 122 |  |  |  | 221 |
Realized (losses) gains on closed derivative positions |  |  | (1,953 | ) |  |  | (350 | ) |  |  | 3,083 |  |  |  | (1,603 | ) |  |  | (5,036 | )
Total trading account (loss) profit |  |  | (1,953 | ) |  |  | (472 | ) |  |  | 2,862 |  |  |  | (1,481 | ) |  |  | (4,815 | )
Total mortgage banking activities |  | $ | 9,926 |  |  | $ | 19,394 |  |  | $ | 12,068 |  |  | $ | (9,468 | ) |  | $ | (2,142 | )

Other Service Fees

|  | Quarters ended |  |  | Variance |
(In thousands) |  | 31-Mar-19 |  |  | 31-Dec-18 |  |  | 31-Mar-18 |  |  | Q1 2019 vs.Q4 2018 |  |  | Q1 2019 vs.Q1 2018 |
Other service fees: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debit card fees |  | $ | 11,170 |  |  | $ | 11,868 |  |  | $ | 11,638 |  |  | $ | (698 | ) |  | $ | (468 | )
Insurance fees |  |  | 12,791 |  |  |  | 14,362 |  |  |  | 12,599 |  |  |  | (1,571 | ) |  |  | 192 |
Credit card fees |  |  | 22,286 |  |  |  | 23,827 |  |  |  | 21,683 |  |  |  | (1,541 | ) |  |  | 603 |
Sale and administration of investment products |  |  | 5,259 |  |  |  | 5,824 |  |  |  | 5,355 |  |  |  | (565 | ) |  |  | (96 | )
Trust fees |  |  | 4,716 |  |  |  | 4,677 |  |  |  | 5,097 |  |  |  | 39 |  |  |  | (381 | )
Other fees |  |  | 8,085 |  |  |  | 9,668 |  |  |  | 4,230 |  |  |  | (1,583 | ) |  |  | 3,855 |
Total other service fees |  | $ | 64,307 |  |  | $ | 70,226 |  |  | $ | 60,602 |  |  | $ | (5,919 | ) |  | $ | 3,705 |

Popular, Inc.

Financial Supplement to First Quarter 2019 Earnings Release

Table G - Loans and Deposits

(Unaudited)

Loans - Ending Balances

|  |  |  |  |  |  |  |  |  |  | Variance |
(In thousands) |  | 31-Mar-19 |  |  | 31-Dec-18 |  |  | 31-Mar-18 |  |  | Q1 2019 vs. Q4 2018 |  |  | Q1 2019 vs. Q1 2018 |
Loans not covered under FDIC loss-sharing agreements: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 12,058,310 |  |  | $ | 12,043,019 |  |  | $ | 11,468,507 |  |  | $ | 15,291 |  |  | $ | 589,803 |
Construction |  |  | 791,320 |  |  |  | 779,449 |  |  |  | 893,391 |  |  |  | 11,871 |  |  |  | (102,071 | )
Legacy [1] |  |  | 24,404 |  |  |  | 25,949 |  |  |  | 31,167 |  |  |  | (1,545 | ) |  |  | (6,763 | )
Lease financing |  |  | 963,232 |  |  |  | 934,773 |  |  |  | 838,383 |  |  |  | 28,459 |  |  |  | 124,849 |
Mortgage |  |  | 7,207,180 |  |  |  | 7,235,258 |  |  |  | 7,064,644 |  |  |  | (28,078 | ) |  |  | 142,536 |
Auto |  |  | 2,742,095 |  |  |  | 2,608,785 |  |  |  | 886,474 |  |  |  | 133,310 |  |  |  | 1,855,621 |
Consumer |  |  | 2,861,167 |  |  |  | 2,880,656 |  |  |  | 2,905,371 |  |  |  | (19,489 | ) |  |  | (44,204 | )
Total non-covered loans held-in-portfolio |  | $ | 26,647,708 |  |  | $ | 26,507,889 |  |  | $ | 24,087,937 |  |  | $ | 139,819 |  |  | $ | 2,559,771 |
Loans covered under FDIC loss-sharing agreements |  |  | — |  |  |  | — |  |  |  | 514,611 |  |  |  | — |  |  |  | (514,611 | )
Total loans held-in-portfolio |  | $ | 26,647,708 |  |  | $ | 26,507,889 |  |  | $ | 24,602,548 |  |  | $ | 139,819 |  |  | $ | 2,045,160 |
Loans held-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage |  |  | 43,985 |  |  |  | 51,422 |  |  |  | 77,701 |  |  |  | (7,437 | ) |  |  | (33,716 | )
Total loans held-for-sale |  | $ | 43,985 |  |  | $ | 51,422 |  |  | $ | 77,701 |  |  | $ | (7,437 | ) |  | $ | (33,716 | )
Total loans |  | $ | 26,691,693 |  |  | $ | 26,559,311 |  |  | $ | 24,680,249 |  |  | $ | 132,382 |  |  | $ | 2,011,444 |

[1] | The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. segment.

Deposits - Ending Balances

|  |  |  |  |  |  |  |  |  |  | Variance |
(In thousands) |  | 31-Mar-19 |  |  | 31-Dec-18 |  |  | 31-Mar-18 |  |  | Q1 2019 vs. Q4 2018 |  |  | Q1 2019 vs.Q1 2018 |
Demand deposits [1] |  | $ | 16,871,924 |  |  | $ | 16,077,023 |  |  | $ | 12,698,538 |  |  | $ | 794,901 |  |  | $ | 4,173,386 |
Savings, NOW and money market deposits (non-brokered) |  |  | 15,806,355 |  |  |  | 15,616,247 |  |  |  | 16,225,871 |  |  |  | 190,108 |  |  |  | (419,516 | )
Savings, NOW and money market deposits (brokered) |  |  | 395,795 |  |  |  | 400,004 |  |  |  | 414,441 |  |  |  | (4,209 | ) |  |  | (18,646 | )
Time deposits (non-brokered) |  |  | 7,724,161 |  |  |  | 7,500,544 |  |  |  | 7,655,903 |  |  |  | 223,617 |  |  |  | 68,258 |
Time deposits (brokered CDs) |  |  | 81,603 |  |  |  | 116,221 |  |  |  | 139,340 |  |  |  | (34,618 | ) |  |  | (57,737 | )
Total deposits |  | $ | 40,879,838 |  |  | $ | 39,710,039 |  |  | $ | 37,134,093 |  |  | $ | 1,169,799 |  |  | $ | 3,745,745 |

[1] | Includes interest and non-interest bearing demand deposits.

Popular, Inc.

Financial Supplement to First Quarter 2019 Earnings Release

Table H - Non-Performing Assets

(Unaudited)

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Variance |
(Dollars in thousands) |  | 31-Mar-19 |  |  | As a % of loans HIP by category |  |  | 31-Dec-18 |  |  | As a % of loans HIP by category |  |  | 31-Mar-18 |  |  | As a % of loans HIP by category |  |  | Q1 2019 vs. Q4 2018 |  |  | Q1 2019 vs. Q1 2018 |
Non-accrual loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 169,154 |  |  |  | 1.4 | % |  | $ | 184,026 |  |  |  | 1.5 | % |  | $ | 158,279 |  |  |  | 1.4 | % |  | $ | (14,872 | ) |  | $ | 10,875 |
Construction |  |  | 13,848 |  |  |  | 1.7 |  |  |  | 13,848 |  |  |  | 1.8 |  |  |  | 4,293 |  |  |  | 0.5 |  |  |  | — |  |  |  | 9,555 |
Legacy [1] |  |  | 2,583 |  |  |  | 10.6 |  |  |  | 2,627 |  |  |  | 10.1 |  |  |  | 3,137 |  |  |  | 10.1 |  |  |  | (44 | ) |  |  | (554 | )
Lease financing |  |  | 2,525 |  |  |  | 0.3 |  |  |  | 3,313 |  |  |  | 0.4 |  |  |  | 3,957 |  |  |  | 0.5 |  |  |  | (788 | ) |  |  | (1,432 | )
Mortgage |  |  | 327,658 |  |  |  | 4.5 |  |  |  | 334,598 |  |  |  | 4.6 |  |  |  | 369,614 |  |  |  | 5.2 |  |  |  | (6,940 | ) |  |  | (41,956 | )
Auto |  |  | 25,162 |  |  |  | 0.9 |  |  |  | 24,050 |  |  |  | 0.9 |  |  |  | 13,356 |  |  |  | 1.5 |  |  |  | 1,112 |  |  |  | 11,806 |
Consumer |  |  | 45,272 |  |  |  | 1.6 |  |  |  | 48,625 |  |  |  | 1.7 |  |  |  | 54,160 |  |  |  | 1.9 |  |  |  | (3,353 | ) |  |  | (8,888 | )
Total non-performing loans held-in-portfolio, excluding covered loans |  |  | 586,202 |  |  |  | 2.2 | % |  |  | 611,087 |  |  |  | 2.3 | % |  |  | 606,796 |  |  |  | 2.5 | % |  |  | (24,885 | ) |  |  | (20,594 | )
Other real estate owned (“OREO”), excluding covered OREO |  |  | 125,478 |  |  |  |  |  |  |  | 136,705 |  |  |  |  |  |  |  | 153,061 |  |  |  |  |  |  |  | (11,227 | ) |  |  | (27,583 | )
Total non-performing assets, excluding covered assets |  |  | 711,680 |  |  |  |  |  |  |  | 747,792 |  |  |  |  |  |  |  | 759,857 |  |  |  |  |  |  |  | (36,112 | ) |  |  | (48,177 | )
Covered loans and OREO |  |  | — |  |  |  |  |  |  |  | — |  |  |  |  |  |  |  | 18,928 |  |  |  |  |  |  |  | — |  |  |  | (18,928 | )
Total non-performing assets [2] |  | $ | 711,680 |  |  |  |  |  |  | $ | 747,792 |  |  |  |  |  |  | $ | 778,785 |  |  |  |  |  |  | $ | (36,112 | ) |  | $ | (67,105 | )
Accruing loans past due 90 days or more [3] [4] |  | $ | 550,717 |  |  |  |  |  |  | $ | 612,543 |  |  |  |  |  |  | $ | 1,129,792 |  |  |  |  |  |  | $ | (61,826 | ) |  | $ | (579,075 | )
Ratios excluding covered loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-performing loans held-in-portfolio to loans held-in-portfolio |  |  | 2.20 | % |  |  |  |  |  |  | 2.31 | % |  |  |  |  |  |  | 2.52 | % |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses to loans held-in-portfolio |  |  | 2.07 |  |  |  |  |  |  |  | 2.15 |  |  |  |  |  |  |  | 2.52 |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses to non-performing loans, excluding loans held-for-sale |  |  | 93.93 |  |  |  |  |  |  |  | 93.17 |  |  |  |  |  |  |  | 100.03 |  |  |  |  |  |  |  |  |  |  |  |  |
Ratios including covered loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-performing assets to total assets |  |  | 1.46 | % |  |  |  |  |  |  | 1.57 | % |  |  |  |  |  |  | 1.70 | % |  |  |  |  |  |  |  |  |  |  |  |
Non-performing loans held-in-portfolio to loans held-in-portfolio |  |  | 2.20 |  |  |  |  |  |  |  | 2.31 |  |  |  |  |  |  |  | 2.48 |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses to loans held-in-portfolio |  |  | 2.07 |  |  |  |  |  |  |  | 2.15 |  |  |  |  |  |  |  | 2.60 |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses to non-performing loans, excluding loans held-for-sale |  |  | 93.93 |  |  |  |  |  |  |  | 93.17 |  |  |  |  |  |  |  | 104.95 |  |  |  |  |  |  |  |  |  |  |  |  |

[1] | The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. segment.

[2] | There were no non-performing loans held-for-sale as of March 31, 2019, December 31, 2018 and March 31, 2018.

[3] | It is the Corporation’s policy to report delinquent residential mortgage loans insured by FHA or guaranteed by the VA as accruing loans past due 90 days or more as opposed to non-performing since the principal repayment is insured. These include loans rebooked, which were previously pooled into GNMA securities amounting to $106 million (December 31, 2018 - $134 million; March 31, 2018 - $535 million). Under the GNMA program, issuers such as BPPR have the option but not the obligation to repurchase loans that are 90 days or more past due. For accounting purposes, these loans subject to the repurchase option are required to be reflected on the financial statements of BPPR with an offsetting liability. These balances include $292 million of residential mortgage loans insured by FHA or guaranteed by the VA that are no longer accruing interest as of March 31, 2019 (December 31, 2018 - $283 million; March 31, 2018 - $194 million). Furthermore, the Corporation has approximately $67 million in reverse mortgage loans which are guaranteed by FHA, but which are currently not accruing interest. Due to the guaranteed nature of the loans, it is the Corporation’s policy to exclude these balances from non-performing assets (December 31, 2018 - $69 million; March 31, 2018 - $57 million).

[4] | The carrying value of loans accounted for under ASC Subtopic 310-30 that are contractually 90 days or more past due was $257 million at March 31, 2019 (December 31, 2018 - $216 million; March 31, 2018 - $274 million). This amount is excluded from the above table as the loans’ accretable yield interest recognition is independent from the underlying contractual loan delinquency status.

Popular, Inc.

Financial Supplement to First Quarter 2019 Earnings Release

Table I - Activity in Non-Performing Loans

(Unaudited)

Commercial loans held-in-portfolio: |
|  | Quarter ended |  |  | Quarter ended |
|  | 31-Mar-19 |  |  | 31-Dec-18 |
(In thousands) |  | BPPR |  |  | Popular U.S. |  |  | Popular, Inc. |  |  | BPPR |  |  | Popular U.S. |  |  | Popular, Inc. |
Beginning balance NPLs |  | $ | 182,950 |  |  | $ | 1,076 |  |  | $ | 184,026 |  |  | $ | 171,271 |  |  | $ | 1,414 |  |  | $ | 172,685 |
Plus: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
New non-performing loans |  |  | 10,554 |  |  |  | 2,220 |  |  |  | 12,774 |  |  |  | 25,366 |  |  |  | 1,158 |  |  |  | 26,524 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-performing loans transferred to OREO |  |  | (962 | ) |  |  | — |  |  |  | (962 | ) |  |  | (1,075 | ) |  |  | — |  |  |  | (1,075 | )
Non-performing loans charged-off |  |  | (17,918 | ) |  |  | (50 | ) |  |  | (17,968 | ) |  |  | (3,482 | ) |  |  | (32 | ) |  |  | (3,514 | )
Loans returned to accrual status / loan collections |  |  | (8,331 | ) |  |  | (385 | ) |  |  | (8,716 | ) |  |  | (9,130 | ) |  |  | (1,464 | ) |  |  | (10,594 | )
Ending balance NPLs |  | $ | 166,293 |  |  | $ | 2,861 |  |  | $ | 169,154 |  |  | $ | 182,950 |  |  | $ | 1,076 |  |  | $ | 184,026 |
Construction loans held-in-portfolio: |
|  | Quarter ended |  |  | Quarter ended |
|  | 31-Mar-19 |  |  | 31-Dec-18 |
(In thousands) |  | BPPR |  |  | Popular U.S. |  |  | Popular, Inc. |  |  | BPPR |  |  | Popular U.S. |  |  | Popular, Inc. |
Beginning balance NPLs |  | $ | 1,788 |  |  | $ | 12,060 |  |  | $ | 13,848 |  |  | $ | 1,829 |  |  | $ | 17,866 |  |  | $ | 19,695 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-performing loans charged-off |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (5,806 | ) |  |  | (5,806 | )
Loans returned to accrual status / loan collections |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (41 | ) |  |  | — |  |  |  | (41 | )
Ending balance NPLs |  | $ | 1,788 |  |  | $ | 12,060 |  |  | $ | 13,848 |  |  | $ | 1,788 |  |  | $ | 12,060 |  |  | $ | 13,848 |
Mortgage loans held-in-portfolio: |
|  | Quarter ended |  |  | Quarter ended |
|  | 31-Mar-19 |  |  | 31-Dec-18 |
(In thousands) |  | BPPR |  |  | Popular U.S. |  |  | Popular, Inc. |  |  | BPPR |  |  | Popular U.S. |  |  | Popular, Inc. |
Beginning balance NPLs |  | $ | 323,565 |  |  | $ | 11,033 |  |  | $ | 334,598 |  |  | $ | 348,779 |  |  | $ | 12,306 |  |  | $ | 361,085 |
Plus: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
New non-performing loans |  |  | 47,228 |  |  |  | 1,820 |  |  |  | 49,048 |  |  |  | 46,187 |  |  |  | 2,352 |  |  |  | 48,539 |
Advances on existing non-performing loans |  |  | — |  |  |  | 72 |  |  |  | 72 |  |  |  | — |  |  |  | 98 |  |  |  | 98 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-performing loans transferred to OREO |  |  | (3,155 | ) |  |  | (124 | ) |  |  | (3,279 | ) |  |  | (15,258 | ) |  |  | (503 | ) |  |  | (15,761 | )
Non-performing loans charged-off |  |  | (5,734 | ) |  |  | (197 | ) |  |  | (5,931 | ) |  |  | (9,376 | ) |  |  | (56 | ) |  |  | (9,432 | )
Loans returned to accrual status / loan collections |  |  | (44,054 | ) |  |  | (2,796 | ) |  |  | (46,850 | ) |  |  | (46,767 | ) |  |  | (3,164 | ) |  |  | (49,931 | )
Ending balance NPLs |  | $ | 317,850 |  |  | $ | 9,808 |  |  | $ | 327,658 |  |  | $ | 323,565 |  |  | $ | 11,033 |  |  | $ | 334,598 |

Total non-performing loans held-in-portfolio (excluding consumer):

|  | Quarter ended |  |  | Quarter ended |
|  | 31-Mar-19 |  |  | 31-Dec-18 |
(In thousands) |  | BPPR |  |  | Popular U.S. |  |  | Popular, Inc. |  |  | BPPR |  |  | Popular U.S. |  |  | Popular, Inc. |
Beginning balance NPLs |  | $ | 508,303 |  |  | $ | 26,796 |  |  | $ | 535,099 |  |  | $ | 521,879 |  |  | $ | 34,989 |  |  | $ | 556,868 |
Plus: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
New non-performing loans |  |  | 57,782 |  |  |  | 4,250 |  |  |  | 62,032 |  |  |  | 71,553 |  |  |  | 3,568 |  |  |  | 75,121 |
Advances on existing non-performing loans |  |  | — |  |  |  | 79 |  |  |  | 79 |  |  |  | — |  |  |  | 114 |  |  |  | 114 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-performing loans transferred to OREO |  |  | (4,117 | ) |  |  | (124 | ) |  |  | (4,241 | ) |  |  | (16,333 | ) |  |  | (503 | ) |  |  | (16,836 | )
Non-performing loans charged-off |  |  | (23,652 | ) |  |  | (247 | ) |  |  | (23,899 | ) |  |  | (12,858 | ) |  |  | (5,881 | ) |  |  | (18,739 | )
Loans returned to accrual status / loan collections |  |  | (52,385 | ) |  |  | (3,442 | ) |  |  | (55,827 | ) |  |  | (55,938 | ) |  |  | (5,491 | ) |  |  | (61,429 | )
Ending balance NPLs [1] |  | $ | 485,931 |  |  | $ | 27,312 |  |  | $ | 513,243 |  |  | $ | 508,303 |  |  | $ | 26,796 |  |  | $ | 535,099 |

[1] | Includes $2.6 million of NPLs related to the legacy portfolio as of March 31, 2019 (December 31, 2018 - $2.6 million).

Popular, Inc.

Financial Supplement to First Quarter 2019 Earnings Release

Table J - Allowance for Credit Losses, Net Charge-offs and Related Ratios

(Unaudited)

|  | Quarter ended |  |  | Quarter ended |  |  | Quarter ended |
|  | 31-Mar-19 |  |  | 31-Dec-18 |  |  | 31-Mar-18 |
(Dollars in thousands) |  | Total |  |  | Total |  |  | Non-covered loans |  |  | Covered loans |  |  | Total |
Balance at beginning of period |  | $ | 569,348 |  |  | $ | 633,718 |  |  | $ | 590,182 |  |  | $ | 33,244 |  |  | $ | 623,426 |
Provision for loan losses |  |  | 41,825 |  |  |  | 42,568 |  |  |  | 69,333 |  |  |  | 1,730 |  |  |  | 71,063 |
|  |  | 611,173 |  |  |  | 676,286 |  |  |  | 659,515 |  |  |  | 34,974 |  |  |  | 694,489 |
Net loans charged-off (recovered): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
BPPR |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | 16,594 |  |  |  | 51,659 |  |  |  | 3,943 |  |  |  | — |  |  |  | 3,943 |
Construction |  |  | (17 | ) |  |  | (720 | ) |  |  | (208 | ) |  |  | — |  |  |  | (208 | )
Lease financing |  |  | 1,486 |  |  |  | 1,323 |  |  |  | 1,993 |  |  |  | — |  |  |  | 1,993 |
Mortgage |  |  | 11,183 |  |  |  | 18,041 |  |  |  | 13,244 |  |  |  | 1,364 |  |  |  | 14,608 |
Consumer |  |  | 24,983 |  |  |  | 26,176 |  |  |  | 22,255 |  |  |  | — |  |  |  | 22,255 |
Total BPPR |  |  | 54,229 |  |  |  | 96,479 |  |  |  | 41,227 |  |  |  | 1,364 |  |  |  | 42,591 |
Popular U.S. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | 2,834 |  |  |  | 1,081 |  |  |  | 6,830 |  |  |  | — |  |  |  | 6,830 |
Construction |  |  | (8 | ) |  |  | 5,806 |  |  |  | — |  |  |  | — |  |  |  | — |
Legacy [1] |  |  | (715 | ) |  |  | (739 | ) |  |  | (331 | ) |  |  | — |  |  |  | (331 | )
Mortgage |  |  | 229 |  |  |  | (82 | ) |  |  | (304 | ) |  |  | — |  |  |  | (304 | )
Consumer |  |  | 3,976 |  |  |  | 4,393 |  |  |  | 5,125 |  |  |  | — |  |  |  | 5,125 |
Total Popular U.S. |  |  | 6,316 |  |  |  | 10,459 |  |  |  | 11,320 |  |  |  | — |  |  |  | 11,320 |
Total loans charged-off - Popular, Inc. |  |  | 60,545 |  |  |  | 106,938 |  |  |  | 52,547 |  |  |  | 1,364 |  |  |  | 53,911 |
Balance at end of period |  | $ | 550,628 |  |  | $ | 569,348 |  |  | $ | 606,968 |  |  | $ | 33,610 |  |  | $ | 640,578 |
POPULAR, INC. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Annualized net charge-offs to average loans held-in-portfolio |  |  | 0.92 | % |  |  | 1.63 | % |  |  | 0.90 | % |  |  |  |  |  |  | 0.90 | %
Provision for loan losses to net charge-offs |  |  | 69.08 | % |  |  | 39.81 | % |  |  | 131.94 | % |  |  |  |  |  |  | 131.82 | %
BPPR |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Annualized net charge-offs to average loans held-in-portfolio |  |  | 1.09 | % |  |  | 1.96 | % |  |  | 0.96 | % |  |  |  |  |  |  | 0.96 | %
Provision for loan losses to net charge-offs |  |  | 58.00 | % |  |  | 45.05 | % |  |  | 137.57 | % |  |  |  |  |  |  | 137.23 | %
Popular U.S. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Annualized net charge-offs to average loans held-in-portfolio |  |  | 0.38 | % |  |  | 0.63 | % |  |  |  |  |  |  |  |  |  |  | 0.72 | %
Provision for loan losses to net charge-offs |  |  | 164.20 | % |  |  | (8.54 | )% |  |  |  |  |  |  |  |  |  |  | 111.44 | %

[1] | The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. segment.

Popular, Inc.

Financial Supplement to First Quarter 2019 Earnings Release

Table K - Allowance for Loan Losses - Breakdown of General and Specific Reserves - CONSOLIDATED

(Unaudited)

31-Mar-19 |
(Dollars in thousands) |  | Commercial |  |  | Construction |  |  | Legacy [1] |  |  | Mortgage |  |  | Lease financing |  |  | Consumer |  |  | Total |
Specific ALLL |  | $ | 33,476 |  |  | $ | 19 |  |  | $ | — |  |  | $ | 43,139 |  |  | $ | 321 |  |  | $ | 25,003 |  |  | $ | 101,958 |
Impaired loans |  | $ | 383,494 |  |  | $ | 13,848 |  |  | $ | — |  |  | $ | 524,803 |  |  | $ | 1,018 |  |  | $ | 110,874 |  |  | $ | 1,034,037 |
Specific ALLL to impaired loans |  |  | 8.73 | % |  |  | 0.14 | % |  |  | — | % |  |  | 8.22 | % |  |  | 31.53 | % |  |  | 22.55 | % |  |  | 9.86 | %
General ALLL |  | $ | 191,013 |  |  | $ | 7,477 |  |  | $ | 829 |  |  | $ | 99,159 |  |  | $ | 8,788 |  |  | $ | 141,404 |  |  | $ | 448,670 |
Loans held-in-portfolio, excluding impaired loans |  | $ | 11,674,816 |  |  | $ | 777,472 |  |  | $ | 24,404 |  |  | $ | 6,682,377 |  |  | $ | 962,214 |  |  | $ | 5,492,388 |  |  | $ | 25,613,671 |
General ALLL to loans held-in-portfolio, excluding impaired loans |  |  | 1.64 | % |  |  | 0.96 | % |  |  | 3.40 | % |  |  | 1.48 | % |  |  | 0.91 | % |  |  | 2.57 | % |  |  | 1.75 | %
Total ALLL |  | $ | 224,489 |  |  | $ | 7,496 |  |  | $ | 829 |  |  | $ | 142,298 |  |  | $ | 9,109 |  |  | $ | 166,407 |  |  | $ | 550,628 |
Total loans held-in-portfolio |  | $ | 12,058,310 |  |  | $ | 791,320 |  |  | $ | 24,404 |  |  | $ | 7,207,180 |  |  | $ | 963,232 |  |  | $ | 5,603,262 |  |  | $ | 26,647,708 |
ALLL to loans held-in-portfolio |  |  | 1.86 | % |  |  | 0.95 | % |  |  | 3.40 | % |  |  | 1.97 | % |  |  | 0.95 | % |  |  | 2.97 | % |  |  | 2.07 | %

[1] | The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. reportable segment.

31-Dec-18 |
(Dollars in thousands) |  | Commercial |  |  | Construction |  |  | Legacy [1] |  |  | Mortgage |  |  | Lease financing |  |  | Consumer |  |  | Total |
Specific ALLL |  | $ | 52,190 |  |  | $ | 56 |  |  | $ | — |  |  | $ | 41,211 |  |  | $ | 320 |  |  | $ | 25,893 |  |  | $ | 119,670 |
Impaired loans |  | $ | 398,518 |  |  | $ | 13,848 |  |  | $ | — |  |  | $ | 518,888 |  |  | $ | 1,099 |  |  | $ | 112,742 |  |  | $ | 1,045,095 |
Specific ALLL to impaired loans |  |  | 13.10 | % |  |  | 0.40 | % |  |  | — | % |  |  | 7.94 | % |  |  | 29.12 | % |  |  | 22.97 | % |  |  | 11.45 | %
General ALLL |  | $ | 186,925 |  |  | $ | 7,368 |  |  | $ | 969 |  |  | $ | 106,201 |  |  | $ | 11,166 |  |  | $ | 137,049 |  |  | $ | 449,678 |
Loans held-in-portfolio, excluding impaired loans |  | $ | 11,644,501 |  |  | $ | 765,601 |  |  | $ | 25,949 |  |  | $ | 6,716,370 |  |  | $ | 933,674 |  |  | $ | 5,376,699 |  |  | $ | 25,462,794 |
General ALLL to loans held-in-portfolio, excluding impaired loans |  |  | 1.61 | % |  |  | 0.96 | % |  |  | 3.73 | % |  |  | 1.58 | % |  |  | 1.20 | % |  |  | 2.55 | % |  |  | 1.77 | %
Total ALLL |  | $ | 239,115 |  |  | $ | 7,424 |  |  | $ | 969 |  |  | $ | 147,412 |  |  | $ | 11,486 |  |  | $ | 162,942 |  |  | $ | 569,348 |
Total loans held-in-portfolio |  | $ | 12,043,019 |  |  | $ | 779,449 |  |  | $ | 25,949 |  |  | $ | 7,235,258 |  |  | $ | 934,773 |  |  | $ | 5,489,441 |  |  | $ | 26,507,889 |
ALLL to loans held-in-portfolio |  |  | 1.99 | % |  |  | 0.95 | % |  |  | 3.73 | % |  |  | 2.04 | % |  |  | 1.23 | % |  |  | 2.97 | % |  |  | 2.15 | %

[1] | The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the Popular U.S. reportable segment.

Variance |
(Dollars in thousands) |  | Commercial |  |  | Construction |  |  | Legacy |  |  | Mortgage |  |  | Lease financing |  |  | Consumer |  |  | Total |
Specific ALLL |  | $ | (18,714 | ) |  | $ | (37 | ) |  | $ | — |  |  | $ | 1,928 |  |  | $ | 1 |  |  | $ | (890 | ) |  | $ | (17,712 | )
Impaired loans |  | $ | (15,024 | ) |  | $ | — |  |  | $ | — |  |  | $ | 5,915 |  |  | $ | (81 | ) |  | $ | (1,868 | ) |  | $ | (11,058 | )
General ALLL |  | $ | 4,088 |  |  | $ | 109 |  |  | $ | (140 | ) |  | $ | (7,042 | ) |  | $ | (2,378 | ) |  | $ | 4,355 |  |  | $ | (1,008 | )
Loans held-in-portfolio, excluding impaired loans |  | $ | 30,315 |  |  | $ | 11,871 |  |  | $ | (1,545 | ) |  | $ | (33,993 | ) |  | $ | 28,540 |  |  | $ | 115,689 |  |  | $ | 150,877 |
Total ALLL |  | $ | (14,626 | ) |  | $ | 72 |  |  | $ | (140 | ) |  | $ | (5,114 | ) |  | $ | (2,377 | ) |  | $ | 3,465 |  |  | $ | (18,720 | )
Total loans held-in-portfolio |  | $ | 15,291 |  |  | $ | 11,871 |  |  | $ | (1,545 | ) |  | $ | (28,078 | ) |  | $ | 28,459 |  |  | $ | 113,821 |  |  | $ | 139,819 |

Popular, Inc.

Financial Supplement to First Quarter 2019 Earnings Release

Table L - Allowance for Loan Losses - Breakdown of General and Specific Reserves - PUERTO RICO OPERATIONS

(Unaudited)

31-Mar-19 |
Puerto Rico |
(In thousands) |  | Commercial |  |  | Construction |  |  | Mortgage |  |  | Lease financing |  |  | Consumer |  |  | Total |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Specific ALLL |  | $ | 33,253 |  |  | $ | 19 |  |  | $ | 40,779 |  |  | $ | 321 |  |  | $ | 23,350 |  |  | $ | 97,722 |
General ALLL |  |  | 155,678 |  |  |  | 803 |  |  |  | 97,077 |  |  |  | 8,788 |  |  |  | 124,315 |  |  |  | 386,661 |
Total ALLL |  | $ | 188,931 |  |  | $ | 822 |  |  | $ | 137,856 |  |  | $ | 9,109 |  |  | $ | 147,665 |  |  | $ | 484,383 |
Loans held-in-portfolio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Impaired loans |  | $ | 381,803 |  |  | $ | 1,788 |  |  | $ | 515,365 |  |  | $ | 1,018 |  |  | $ | 101,887 |  |  | $ | 1,001,861 |
Loans held-in-portfolio, excluding impaired loans |  |  | 7,009,319 |  |  |  | 89,584 |  |  |  | 5,860,223 |  |  |  | 962,214 |  |  |  | 5,073,149 |  |  |  | 18,994,489 |
Total loans held-in-portfolio |  | $ | 7,391,122 |  |  | $ | 91,372 |  |  | $ | 6,375,588 |  |  | $ | 963,232 |  |  | $ | 5,175,036 |  |  | $ | 19,996,350 |

31-Dec-18 |
Puerto Rico |
(In thousands) |  | Commercial |  |  | Construction |  |  | Mortgage |  |  | Lease financing |  |  | Consumer |  |  | Total |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Specific ALLL |  | $ | 52,190 |  |  | $ | 56 |  |  | $ | 38,760 |  |  | $ | 320 |  |  | $ | 24,083 |  |  | $ | 115,409 |
General ALLL |  |  | 155,024 |  |  |  | 830 |  |  |  | 104,218 |  |  |  | 11,166 |  |  |  | 120,511 |  |  |  | 391,749 |
Total ALLL |  | $ | 207,214 |  |  | $ | 886 |  |  | $ | 142,978 |  |  | $ | 11,486 |  |  | $ | 144,594 |  |  | $ | 507,158 |
Loans held-in-portfolio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Impaired |  | $ | 398,518 |  |  | $ | 1,788 |  |  | $ | 509,468 |  |  | $ | 1,099 |  |  | $ | 104,235 |  |  | $ | 1,015,108 |
Loans held-in-portfolio, excluding impaired loans |  |  | 6,974,125 |  |  |  | 84,167 |  |  |  | 5,923,855 |  |  |  | 933,674 |  |  |  | 4,952,543 |  |  |  | 18,868,364 |
Total loans held-in-portfolio |  | $ | 7,372,643 |  |  | $ | 85,955 |  |  | $ | 6,433,323 |  |  | $ | 934,773 |  |  | $ | 5,056,778 |  |  | $ | 19,883,472 |

Variance |
(In thousands) |  | Commercial |  |  | Construction |  |  | Mortgage |  |  | Lease financing |  |  | Consumer |  |  | Total |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Specific ALLL |  | $ | (18,937 | ) |  | $ | (37 | ) |  | $ | 2,019 |  |  | $ | 1 |  |  | $ | (733 | ) |  | $ | (17,687 | )
General ALLL |  |  | 654 |  |  |  | (27 | ) |  |  | (7,141 | ) |  |  | (2,378 | ) |  |  | 3,804 |  |  |  | (5,088 | )
Total ALLL |  | $ | (18,283 | ) |  | $ | (64 | ) |  | $ | (5,122 | ) |  | $ | (2,377 | ) |  | $ | 3,071 |  |  | $ | (22,775 | )
Loans held-in-portfolio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Impaired |  | $ | (16,715 | ) |  | $ | — |  |  | $ | 5,897 |  |  | $ | (81 | ) |  | $ | (2,348 | ) |  | $ | (13,247 | )
Loans held-in-portfolio, excluding impaired loans |  |  | 35,194 |  |  |  | 5,417 |  |  |  | (63,632 | ) |  |  | 28,540 |  |  |  | 120,606 |  |  |  | 126,125 |
Total loans held-in-portfolio |  | $ | 18,479 |  |  | $ | 5,417 |  |  | $ | (57,735 | ) |  | $ | 28,459 |  |  | $ | 118,258 |  |  | $ | 112,878 |

Popular, Inc.

Financial Supplement to First Quarter 2019 Earnings Release

Table M - Allowance for Loan Losses - Breakdown of General and Specific Reserves - POPULAR U.S. OPERATIONS

(Unaudited)

31-Mar-19 |
Popular U.S. |
(In thousands) |  | Commercial |  |  | Construction |  |  | Legacy |  |  | Mortgage |  |  | Consumer |  |  | Total |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Specific ALLL |  | $ | 223 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,360 |  |  | $ | 1,653 |  |  | $ | 4,236 |
General ALLL |  |  | 35,335 |  |  |  | 6,674 |  |  |  | 829 |  |  |  | 2,082 |  |  |  | 17,089 |  |  |  | 62,009 |
Total ALLL |  | $ | 35,558 |  |  | $ | 6,674 |  |  | $ | 829 |  |  | $ | 4,442 |  |  | $ | 18,742 |  |  | $ | 66,245 |
Loans held-in-portfolio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Impaired loans |  | $ | 1,691 |  |  | $ | 12,060 |  |  | $ | — |  |  | $ | 9,438 |  |  | $ | 8,987 |  |  | $ | 32,176 |
Loans held-in-portfolio, excluding impaired loans |  |  | 4,665,497 |  |  |  | 687,888 |  |  |  | 24,404 |  |  |  | 822,154 |  |  |  | 419,239 |  |  |  | 6,619,182 |
Total loans held-in-portfolio |  | $ | 4,667,188 |  |  | $ | 699,948 |  |  | $ | 24,404 |  |  | $ | 831,592 |  |  | $ | 428,226 |  |  | $ | 6,651,358 |
31-Dec-18 |
Popular U.S. |
(In thousands) |  | Commercial |  |  | Construction |  |  | Legacy |  |  | Mortgage |  |  | Consumer |  |  | Total |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Specific ALLL |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2,451 |  |  | $ | 1,810 |  |  | $ | 4,261 |
General ALLL |  |  | 31,901 |  |  |  | 6,538 |  |  |  | 969 |  |  |  | 1,983 |  |  |  | 16,538 |  |  |  | 57,929 |
Total ALLL |  | $ | 31,901 |  |  | $ | 6,538 |  |  | $ | 969 |  |  | $ | 4,434 |  |  | $ | 18,348 |  |  | $ | 62,190 |
Loans held-in-portfolio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Impaired loans |  | $ | — |  |  | $ | 12,060 |  |  | $ | — |  |  | $ | 9,420 |  |  | $ | 8,507 |  |  | $ | 29,987 |
Loans held-in-portfolio, excluding impaired loans |  |  | 4,670,376 |  |  |  | 681,434 |  |  |  | 25,949 |  |  |  | 792,515 |  |  |  | 424,156 |  |  |  | 6,594,430 |
Total loans held-in-portfolio |  | $ | 4,670,376 |  |  | $ | 693,494 |  |  | $ | 25,949 |  |  | $ | 801,935 |  |  | $ | 432,663 |  |  | $ | 6,624,417 |
Variance |
(In thousands) |  | Commercial |  |  | Construction |  |  | Legacy |  |  | Mortgage |  |  | Consumer |  |  | Total |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Specific ALLL |  | $ | 223 |  |  | $ | — |  |  | $ | — |  |  | $ | (91 | ) |  | $ | (157 | ) |  | $ | (25 | )
General ALLL |  |  | 3,434 |  |  |  | 136 |  |  |  | (140 | ) |  |  | 99 |  |  |  | 551 |  |  |  | 4,080 |
Total ALLL |  | $ | 3,657 |  |  | $ | 136 |  |  | $ | (140 | ) |  | $ | 8 |  |  | $ | 394 |  |  | $ | 4,055 |
Loans held-in-portfolio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Impaired loans |  | $ | 1,691 |  |  | $ | — |  |  | $ | — |  |  | $ | 18 |  |  | $ | 480 |  |  | $ | 2,189 |
Loans held-in-portfolio, excluding impaired loans |  |  | (4,879 | ) |  |  | 6,454 |  |  |  | (1,545 | ) |  |  | 29,639 |  |  |  | (4,917 | ) |  |  | 24,752 |
Total loans held-in-portfolio |  | $ | (3,188 | ) |  | $ | 6,454 |  |  | $ | (1,545 | ) |  | $ | 29,657 |  |  | $ | (4,437 | ) |  | $ | 26,941 |

Popular, Inc.

Financial Supplement to First Quarter 2019 Earnings Release

Table N - Reconciliation to GAAP Financial Measures

(Unaudited)

(In thousands, except share or per share information) |  | 31-Mar-19 |  |  | 31-Dec-18 |  |  | 31-Mar-18 |
Total stockholders’ equity |  | $ | 5,440,060 |  |  | $ | 5,435,057 |  |  | $ | 5,064,909 |
Less: Preferred stock |  |  | (50,160 | ) |  |  | (50,160 | ) |  |  | (50,160 | )
Less: Goodwill |  |  | (671,122 | ) |  |  | (671,122 | ) |  |  | (627,294 | )
Less: Other intangibles |  |  | (24,521 | ) |  |  | (26,833 | ) |  |  | (33,347 | )
Total tangible common equity |  | $ | 4,694,257 |  |  | $ | 4,686,942 |  |  | $ | 4,354,108 |
Total assets |  | $ | 48,680,607 |  |  | $ | 47,604,577 |  |  | $ | 45,756,761 |
Less: Goodwill |  |  | (671,122 | ) |  |  | (671,122 | ) |  |  | (627,294 | )
Less: Other intangibles |  |  | (24,521 | ) |  |  | (26,833 | ) |  |  | (33,347 | )
Total tangible assets |  | $ | 47,984,964 |  |  | $ | 46,906,622 |  |  | $ | 45,096,120 |
Tangible common equity to tangible assets |  |  | 9.78 | % |  |  | 9.99 | % |  |  | 9.66 | %
Common shares outstanding at end of period |  |  | 96,629,891 |  |  |  | 99,942,845 |  |  |  | 102,189,914 |
Tangible book value per common share |  | $ | 48.58 |  |  | $ | 46.90 |  |  | $ | 42.61 |

CONTACT:

Popular, Inc.

Investor Relations:

Paul Cardillo, 212-417-6721

Senior Vice President, Investor Relations Officer

or

Media Relations:

Teruca Rullán, 787-281-5170 or 917-679-3596 (mobile)

Senior Vice President, Corporate Communications